Warburton Hospital could reopen, but no bid from government
A deserted old hospital waiting to be used could be reopened after five buyers made offers for it. But the government wasn’t one of them, despite calls for it to make a bid amid COVID-19 fears.
A mothballed hospital on Melbourne’s fringe could be reopened after a series of multimillion-dollar bids from the private sector.
But despite concerns the healthcare industry could be stretched to its limits by COVID-19, the government did not make a bid for the former Warburton Hospital, which includes its own operating theatre and was in use until about 2010.
Eildon state Liberal MP Cindy McLeish had called for the State Government to buy the property, which has been maintained at near working capacity since it closed, after being contacted by multiple constituents.
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“I have been contacted by many people, more so recently, wanting to see the hospital reopen, particularly because the nearest hospital services are 50kms away,” Ms McLeish told the Yarra Valley Leader.
The 8ha property at 25 Donna Buang Rd, Warburton also includes health retreat buildings and was once home to the Warburton Hydro attended by celebrities and AFL footballers.
The Bernardo Group, which owns the landmark property, is now understood to be entertaining about five offers from aged care, retirement and healthcare groups. Some have also expressed interest in adding tourist accommodation.
CBRE director Sandro Peluso said all the offers had come from Australia and he expected it would still be at least two weeks before any were accepted.
“The ink is still drying, so we will wait a few weeks as we process the offers,” Mr Peluso said.
“One of the groups is healthcare, so there’s potential to return the hospital. But all of these groups are looking at the existing buildings.”
When the hospital was first listed for sale, Mr Peluso estimated that its land value would be worth at least $20 million.
Isolated on 8ha of private grounds it still has approximately 70 beds still with sheets on them 10 years after it closed its doors.
Mr Peluso said medical properties were in demand after social distancing measures were implemented worldwide last month.
A Traralgon medical centre listed with CBRE attracted global interest and nine offers last week, with three groups making offers above that properties reserve and further negotiation underway now.
Mr Peluso said one international buyer still in the running had never set foot on the property, inspecting it solely by video.
“These healthcare and social infrastructure assets are bulletproof,” he said.
“People will always need medical facilities, and we are seeing a massive flight and jump from traditional investors in the retail and commercial world who are now looking to diversification.”
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Originally published as Warburton Hospital could reopen, but no bid from government